The main reason a monopoly engages in price discrimination is:
A)to take advantage of market share.
B)to increase its profits.
C)to create a barrier to entry.
D)to give the impression of a fair market structure to discourage efforts to regulate the industry.

Question

Quizplus · Accepted Answer

The main reason a monopoly engages in price discrimination is to increase its profits. By charging different prices to different customers based on their willingness to pay, a monopoly can extract the maximum amount of revenue from each customer and increase its overall profits.

The Main Reason a Monopoly Engages in Price Discrimination Is